Two-Way Quotation
A price quote showing both the bid and ask prices simultaneously, allowing immediate buy or sell execution.
A two-way quotation displays both the bid price (at which you can sell) and the ask price (at which you can buy) for a financial instrument at the same time. Market makers are obligated to provide two-way quotes, ensuring there is always a price available on both sides. This two-sided pricing gives liquid markets their immediacy, allowing traders to enter or exit positions instantly.
How It Works
- The market maker posts a bid and an ask simultaneously
- The bid is always lower than the ask. The difference is the spread.
- Traders sell at the bid and buy at the ask. No negotiation on standard quotes.
- In highly liquid markets, two-way quotes update multiple times per second
Trading Tips
A tight two-way quote indicates a liquid market with competition among market makers
A suddenly widening spread signals reduced liquidity or increased uncertainty
Observe two-way quotes during different sessions to see how your broker's spreads behave
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